Collapse of Fund Management Companies: SEC appoints CBG to validate claims

The Securities and Exchange Commission (SEC) has appointed the Consolidated Bank of Ghana Limited (CBG) to validate claims of affected customers of the 53 Fund Management Companies (FMCs) whose licences have been revoked.

The validation process is expected to start on Monday, November 18.

Customers are expected to provide evidence of their investment claims such as investment certificates, account statements, receipts and other relevant documentation for validation, a statement issued by SEC on Tuesday said.

SEC last Friday, November 8, withdrew the licences of the 53 FMCs for failing to return client funds which remained locked up in contravention of the investment rules.

Read also

SEC asked to provide clarity on collapsed investment firms

Have faith in existing fund management firms — Securities Industry Association

What you need to know about SEC's revocation of Fund Management licences

According to SEC, the appointment of an Agent is in accordance with Section 26 of Act 929.

“The Agent is authorised to ascertain and validate details of investors and their investments with these institutions at the time of the revocation to facilitate the administration of the Government pay-out of a capped amount to affected investors,” the statement said.

It noted however that the offices of the affected FMCs will remain closed until further notice. 

“We will issue further notice on commencement of payment to investors whose claims have been validated,” the statement added.

Below is the mapped branch network of CBG branches to the offices of the affected Fund Management companies